Greensboro/Winston-Salem Apartment Vacancies at 8.3%, Highest Since 1999
GlobeSt.com; New York; Oct 31, 2001; Roxanna Guilford-Blake

Abstract:
GREENSBORO, NC-Supply is outracing demand in this booming Southeast commercial hub with 1,217 units under construction and an annual average net absorption of only 986 units. A total 636 units were rented in the first half.

Full Text:
(Copyright (c) 2001 by GlobeSt.com LLC)

GREENSBORO, NC-Apartment vacancies in the growing Greensboro-Winston-Salem, NC market are at 8.3%, the highest since March 1999, and could rise to 9.1% by spring as supply outraces demand, according to Carolina Real Data Real Estate Information Services, a locally based industry researcher.

The company's October analysis, published in the Greensboro/Winston-Salem Apartment Report, shows 1,217 apartment units are under construction and another 1,433 units are on the drawing boards. However, the absorption level has been dropping, totaling an average 986 units per year. The region absorbed 636 units in the last six months.

The 8.3% vacancy level is the second-highest since March 1999 when an 8.4% rate was recorded by the researchers.

Carolinas Real Data analyst Michelle Westbrook tells GlobeSt.com she expects the lackluster demand and the high vacancy rates to continue throughout 2002 with vacancies possibly hitting the 9.1% mark.

But the analyst says, "It is not a long-term issue; in the short term, development will slow down and it will be more difficult to raise rents."

In September, one-bedroom apartments were renting, on average, for $537; two-bedroom, $623; and three-bedroom, $778. In September 2000, those numbers were $524 for one bedroom, $605 for two bedrooms and $751 for three bedrooms.

The report tracks apartment buildings with at least 40 units. For the September survey, 47,544 units were monitored in Alamance, Guilford and Forsyth counties. Since then, 1,844 units have been added.